Thematic Background

Recent academic and consulting research on environmental, social and governance (ESG) issues
has identified the need for business to shift attention from external engagement to internal
integration.

In late 2007, the EU-funded EABIS RESPONSE Project identified a direct correlation between a firm’s integration of ESG issues and superior social performance. Three of the primary factors behind this were the integration of corporate responsibility into: (1) business processes; (2) strategic decision-making; and (3) internal change initiatives. These findings are echoed in other academic research and literature.

Consulting research by some of the world’s leading firms (PwC, BCG, Ernst & Young, McKinsey, IBM, Accenture) has highlighted the growing strategic relevance of ESG factors. A 2007 survey showed that 70% of CEOs interviewed saw integration of corporate responsibility (CR) around ESG issues as a “very high” or “high” priority – compared to 33% five years previously. Corporate leaders particularly stressed the difficulties they experienced in managing successful organisational change.

All of this indicates notable performance gaps between aspiration and reality, that successful internal integration and organisational transformation remain the key challenges to address. Major factors behind successful implementation are dealing with competing strategic priorities, overcoming organisational complexity, and upgrading executive & managerial competencies.

Leadership today oversees a complex interface of growing external pressures on the firm, as well as changing expectations on adaptation and performance in light of social and environmental issues. It demands that CEOs play a facilitating role between the corporate response to these external expectations and the internal transformation of the organisation.

The latter involves evolutionary or transformational adaptation in organisational purpose & strategy, culture & structure, processes & systems, and capabilities & competencies. Successful embedding of CR and Sustainability depends on the ability of corporate leadership to design and lead “whole system” change management strategies that affect all of the above.

Both the EABIS Annual Leaders Forum (June 12, Brussels, Belgium) and Annual Colloquium (Sept 10-12, Cranfield, UK) will therefore profile a range of innovative approaches, deep practical insights and thought leadership. Senior figures from business, academia and beyond will deliver cutting edge perspective and commentary. Knowledge sharing through interactive debate and analysis will as ever lie at the heart of each.

By extension, other objectives automatically emerge, such as the attempt to identify: (a) the major gaps in existing research and knowledge on, and (b) the most business-relevant future research questions for embedding CR and Sustainability in the DNA of an organization.